Spousal IRA
RetirementGlossary term
Definition
An IRA contribution strategy allowing a working spouse to contribute to an IRA on behalf of a non-working or lower-earning spouse. Both traditional and Roth spousal IRAs are available, subject to the same annual contribution limits.
Related terms
- Traditional IRAA retirement account with tax-deductible contributions (if eligible) and tax-deferred growth. Withdrawals in retirement are taxed as ordinary income. RMDs required at age 73.
- Roth IRAA retirement account where contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free. Particularly beneficial for younger investors.
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